can anybody help me with the concept and gratuity? also i want to know calculation of gratuity? does the calculation is same for service industry & manufacturing industry?
From India, Ahmedabad
3From India, Ahmedabad
Dear Aarti and other freshers,
We would appreciate if you could search the site or web for basic queries which have already been addressed. You can also use side bar to check the relevant topics discussed to gain better insight.
As for your query about Gratuity calculations,
It is 15 days' salary for every year of service rendered.
Please note that though a person is eligible to claim the gratuity amount only after he serves a minimum period of 5 years (except in case of death or disablement) the employer are supposed to credit the gratuity amount year on year in an account. Gratuity is a safe and compulsory due on employer to be given to employee. Gratuity cannot be withheld except in certain situations as prescribed by the Gratuity act.
Calculation is 15/26 * (Last drawn salary) * No. of years served.
Note that after 5 years of service is rendered, we can thereafter round the service tenure to nearest decimal by -
If the person serves for upto 6 months, the years is rounded to lower number (i.e. 5.5 years is rounded to 5 years)
If the person server more than 6 months, years is rounded to upper number (i.e. 5.7 years is rounded to 6 years)
You can read further on -
1) https://www.citehr.com/445131-gratui...ice-years.html
2) https://www.citehr.com/166761-gratui...ic-salary.html
3) https://www.citehr.com/235334-confus...lculation.html
4) https://www.citehr.com/330656-need-i...nd-amount.html
Hope this will help you.
From India, Mumbai
We would appreciate if you could search the site or web for basic queries which have already been addressed. You can also use side bar to check the relevant topics discussed to gain better insight.
As for your query about Gratuity calculations,
It is 15 days' salary for every year of service rendered.
Please note that though a person is eligible to claim the gratuity amount only after he serves a minimum period of 5 years (except in case of death or disablement) the employer are supposed to credit the gratuity amount year on year in an account. Gratuity is a safe and compulsory due on employer to be given to employee. Gratuity cannot be withheld except in certain situations as prescribed by the Gratuity act.
Calculation is 15/26 * (Last drawn salary) * No. of years served.
Note that after 5 years of service is rendered, we can thereafter round the service tenure to nearest decimal by -
If the person serves for upto 6 months, the years is rounded to lower number (i.e. 5.5 years is rounded to 5 years)
If the person server more than 6 months, years is rounded to upper number (i.e. 5.7 years is rounded to 6 years)
You can read further on -
1) https://www.citehr.com/445131-gratui...ice-years.html
2) https://www.citehr.com/166761-gratui...ic-salary.html
3) https://www.citehr.com/235334-confus...lculation.html
4) https://www.citehr.com/330656-need-i...nd-amount.html
Hope this will help you.
From India, Mumbai
According to me, The ideal calculation of gratuity 15*Avg of last 3 month basic salary*No. Year Serviced/26
From India, Rajkot
From India, Rajkot
Dear all,
Only for your information if employee continues work in same organization more than 4.8 or 5 year than he is eligible for gratuity.
Gratuity Calculation
current basic/26*15*no of years
Gratuity amount limit is 10 Lakh
Thanks and Regards
Mahendra Patole
From India, Mumbai
Only for your information if employee continues work in same organization more than 4.8 or 5 year than he is eligible for gratuity.
Gratuity Calculation
current basic/26*15*no of years
Gratuity amount limit is 10 Lakh
Thanks and Regards
Mahendra Patole
From India, Mumbai
As per the experts view, it is ideal to count on average of last 3 month. and ya gratuity amount limit is 10 lack
From India, Rajkot
From India, Rajkot
#Subject List: manufacturing industry service industry calculation of gratuity basic salary gratuity calculation Country-India City-India-Ahmedabad gratuity act gratuity eligibility
Gratuity calculation.doc
